For the last five years, the real estate market in Utah has shown strong economic growth with people moving into the state. In Utah, the population increased by 9 percent, which was the highest in the country. During the last three years, home prices in the state increased by 25 percent. These recent statistics indicate that investing in Utah real estate is still a good idea.
Is Investing in Utah Real Estate Still a Good Idea?
The Utah real estate market is different from the small boom-and-bust ones that happen in Florida and oil country. The economic strengths that make our state a good place to invest is predicted to continue for decades. This makes it easier to invest because you don’t have to time everything perfectly when getting in and out of real estate.
Caution is Always Required
While Utah is a solid place to invest in real estate, we always recommend caution when real estate is involved because cycles occur. These cycles are usually fuelled by sudden changes in the demand for housing. When they happen, they have the potential of impacting a market where the economy is generally good.
In Utah, the strongest growth is happening outside of the state’s dominant market. Specifically, the cities of Ogden and Provo are seeing the most growth. The populations in these areas grew at a rate that was above average in recent years. These smaller markets even have better job growth, making them a good bet for real estate investments.
Large Investment Options in Salt Lake City
While the market is starting to tip into over-priced territory, job growth overall is increasing in the area. Home prices are pretty high, but the price versus rent ratio continues to be low enough that a single-family home can be rented out entirely without the need to split it up into separate units to earn a profit. In Salt Lake, investment options are diverse, so you can go with something that speaks to your knowledge and experience.
Investing in Utah Real Estate is Still a Good Idea
Right now, the best real estate investment opportunities appear to be in Provo. In Utah County, population growth has been good. Jobs are still coming in while homes remain affordable. You’re also likely to face less competition. When it comes to investments, splitting single-family homes into separate rentals is often the best way to go, but if you don’t have a contractor on hand, then there are other investment options. We see your long-term prospects in Utah real estate as being very good as are the short-term ones. This means that investing in Utah real estate is still a good idea. If you find yourself in need of a realtor, call Presidio, we’d be happy to assist you.